- Oil Surges Above $50 as Producers Set to Meet
Global oil prices climbed above $50 a barrel for the first time since May after OPEC announced it will meet allies next week to discuss compliance.
Last week, oil rose above its 200-day moving average for the first time since May. Even as the U.S. rigs inched higher to 766, according to Baker Hughes data.
“The market is closely watching the adherence to those cuts,” said Daniel Hynes, a Sydney-based analyst at Australia & New Zealand Banking Group Ltd. “We estimate that the market is fairly balanced at the moment, so any small swing from output, particularly from OPEC, can push the market either into surplus or deficit.”
Nigeria and Libya are expected to cut production once they attain OPEC framework for producers. Nigeria expected to cut oil output once production reached 1.8 mbpd, while Libya is expected to commence production cut at 1.25 mbpd.